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Non-Tech : Don't abuse it, reuse it! ARCI makes the big comeback. -- Ignore unavailable to you. Want to Upgrade?

To: RAW who wrote (21)	11/21/1998 4:47:00 PM
From: Jim Mac	Read Replies (1) \| Respond to of 60

Good news. 98Q3 results are in: (At SEC archives) (In 1,000's) Revenues $4,254, up 53% from 97Q3, up 18% from last Q Same store sales up 138% vs 98Q2's 102% growth rate! Gross profit $1,725, up 61% from 97Q3, up 47% from last Q Gross margin 41% vs 38% 97Q3, 33% last Q Op Inc $123 vs ($102) 97Q3, ($855)/($337) w/o chg last Q Net Inc ($81) vs ($210) 97Q3, ($942)/($424) w/o chg last Q EPS ($0.07) vs ($0.18) 97Q3, ($0.79)/($0.36) w/o chg last Q Shares 1,237 Cash $696 Current assets $3,938 Current liab $3,230 Current ratio 1.2 LT Debt $4,955 Shareholders equity $2,157 or $1.74 per share Edison was strong and wants to continue in 98Q4, will submit 1999 plan to CA PUC in mid November. Retail sales per store now almost $200K per Q, vs $150K last Q, and $87K 97Q3. 11 stores now, vs 13 last Q, 12 year ago. Get the rest at the archives. My hands are tired. Although Edison will continue to be volatile, the big Whirlpool deal was signed in Sept, so its effect hasn't been felt yet. Looks good to me.

To: RAW who wrote (21)	11/22/1998 3:24:00 PM
From: Jim Mac	Respond to of 60

With $696,000 in cash/equiv now, ARCI has $0.56 cash per share, way up from $0.01 a quarter or two ago. And current ratio has improved from 0.5 to 1.2. It looks like they used a bug chunk of that new credit facility to pay down a lot of revolver debt and load up on Whirlpool scratch and dent inventory. Let's hope the next 2 quarters' retail sales jump another half million or more, and that Edison gets PUC approval to continue SoCal operation with minimal disruption. It looks like if ARCI can grow gross profit another $300,000 and keep SGA and interest level, they'll be profitable. GP grew by $1,000,000 in two quarters, thanks to Edison and Whirlpool, so maybe 1999 will be the year of black ink, if Edison renews for a larger size contract and retail continues growing rapidly. Q3 EBITDA was about $700,000, up from Q2's EBITDA of about $250,000. 83% of extra Q3 revenues hit gross profit line, compared to Q2's 55%. And retail+recycling revs were highest in two years. Thank you Edison and Whirlpool.

To: RAW who wrote (21)	11/23/1998 6:33:00 PM
From: Jim Mac	Respond to of 60

Looks like the cat's outta the bag. ARCI announced their Q3 results in a press release today, and said they added two experienced retail people to board. Also said Edison plans to increase their volume next year, but Q4 will be a loss due to the temporary reduction in Edison work. This is looking more and more like 1999 is the year of black ink, or at least positive EBITDA. Hopefully, ARCI will do $20M in revs, putting sales per share at $10, using diluted shares, almost 2M, taking into consideration 700,000 warrants issued this year in connection with new credit facility. I guess diluted shares outstanding will approach 2M, putting current cash per share at $0.56 basic, $0.35 diluted. Note that shares outstanding now shows basic, not diluted. But when profits appear, diluted # will be used, almost 2M shares. Heavy volume today, ARCI up over 80%.